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July 3, 2014

NYT: S.E.C. Limits Derivatives Trading by Foreign Branches of U.S. Banks

The Securities and Exchange Commission adopted a rule on Wednesday to rein in derivatives trading by foreign branches of United States banks, moving to strengthen oversight of a risky business that helped cause the financial crisis.

The rule, unanimously supported in a vote by the agency’s five commissioners, clarifies which foreign subsidiaries need to register with the S.E.C. and become subject to tougher standards for reporting trades and for maintaining a cushion against losses. The new rule stems from the Dodd-Frank financial overhaul law that was passed nearly four years ago.

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